But it’s not 40% on flex?
Maybe you are then….
3 Likes
I don’t love Monzo.
But your maths is wrong and you don’t understand the difference between legally binding credit agreements which could negatively impact your financial life for six years (despite already having a default) and paid-for monthly products.
9 Likes
Forgive me. What are the costs of the two products in my example?
Can someone educate me please.
Ignoring interest, your max utilisation of £500 would be a little under £42/month on the maximum time period for repayments (12 months). Not £16.
Why would you ignore that? I asked what the costs of the products were!
The interest is the cost of the product!
What difference does it make? The repayments are clearly over the £16 per month that you are arguing about.
3 Likes
I think the point is that you’d need to include the total monthly outlay if you’re doing an affordability comparison between flex and plus.
5 Likes
Read my original point. Not sure why people don’t get it, but hey ho.
19.9% APR for flex
39.9% APR for overdraft.
I’ve a negative history of debt, albeit 5+ years old, and equates to less than £600.
Not eligible for a loan but am eligible for a “modest” overdraft and flex limits.
I’ve around £2,000 balances between 4 credit cards.
Overdraft rarely touched (except this month, for less than a week).
It all depends on Monzo risk appetite and customer types.
Possibly don’t want the spend and pay in full the same month as it doesn’t make them money via interest.
Who knows.
1 Like
You’re wrong and you’ve had it explained to you multiple times by multiple people now 
7 Likes
So when is Monzo Stretch coming? The mortgage product.
2 Likes
I do keep wondering if this is next tbf 
not sure on the name though.
This is the cringiest conversation I’ve read in a long while 
13 Likes
You’ve probably been declined because your credit report already has evidence you haven’t paid back what you owe on time, at some point in the past.
Affordability has probably got nothing to do with your rejection. You could afford to repay £5grand every month but if you’ve got a history of not paying stuff back, banks are going to be reticent to lend you money.
Monzo has, however, cannily worked out you can still afford its paid–for product which doesn’t involve advancing you any funds it might not get back, and is trying to make money out of you that way.
You, meanwhile, Genius, still seem confused between an open–ended line of credit and a minimum six–month commitment to paying £15.
2 Likes
The wash has already come out and my guardian angels have kindly been off and sorted some things behind the scenes
Now approved for Flex. Thanks :mondo:
11 Likes
To be fair, I don’t think there are any affordability checks for the Plus or Premium accounts as it is simply an add on with no credit agreement involved, more just a mutual agreement.
3 Likes
In tymit app there is nice simulator for purchases.
Note that numbers for Monzo might be slightly different because of APR 19% instead of 20% and taking first payment upfront, instead of after the delay, but the difference should be very small. It looks like £500 purchase, split into 12 payments, will result in roughly £45.58 equal repayments.
Your sample of saying that surely they can offer a limit that is equivalent to £15 per month repayments for full credit line usage split into 12 payments would be £165. I hope you agree that £165 credit limit is very low and not useful to administer.
I hope above estimates are helpful. Also note the full amount to repay.
4 Likes
Wow things have got a little bit messy in here…
Just doing a little bit of tidying up 
I think most users here know the Code of Conduct but if you’re not sure, feel free to DM me and I’ll direct you towards it 
10 Likes
That was fast!
Did someone manually look into this for you and override it? Curious how you got to your happy ending here! Most of these things are automated, and rejections usually lead to a lock out for a while (future applications being auto rejected, or pre-rejection).
1 Like
I don’t think it is betraying my fairy godmother to confirm that it was a manual intervention
I think my being both in this batch and rejected attracted their attention. As above, there are some corner cases still being worked on
I wouldn’t want to give the impression that everyone rejected will get similarly sorted, but worth folk affected mentioning it like I did
6 Likes